1. preston, inc., manufactures wooden shelving units for collecting and sorting mail. the company expects to produce 480 units in july and 400 units in august. each unit requires 10 feet of wood at a cost of $1.50 per foot. preston wants to always have 300 feet of wood on hand in materials inventory. compute preston’s raw materials purchases budget for july and august. july augustbudgeted raw materials purchases $ $2. preston, inc., manufactures wooden shelving units for collecting and sorting mail. the company expects to produce 480 units in july and 400 units in august. each unit requires 1.75 hours of direct labor, and labor wages average $9 per hour. compute preston’s direct labor budget for july and august. july augustbudgeted direct labor cost $ $

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.

Afood worker has just rinsed a dish after cleaning it.what should he do next?

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?